Showing posts with label Taxation. Show all posts
Showing posts with label Taxation. Show all posts
Taxation - A02
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Multiple Choice Single Answer
Question Mediclaim premium u/s Section 80D should be paid by
Correct Answer Cheque
True/False
Question Any sum payable by the assessee by way of tax, duty, cess or fee is
allowed as deduction even though they are not actually paid.
Correct Answer False
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes both tangible as well as intangible assets.
Correct Answer True
Multiple Choice Multiple Answer
Question What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interest credited to the employee's account is not liable for any tax payment. , The lump sum received at the time of retirement or resignation or death is also exempt under section 10(11) and 10(12).
Select The Blank
Question The aggregate amount of all the expenditure falling under the head
preliminary expenses incurred under section 3________, for an Indian company the aggregate of all the expenditure can be 5% of the cost of project or 5% of capital employed whichever is higher.
Correct Answer 5% of the cost of project or 5% of capital employed
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March
Multiple Choice Single Answer
Question Rates of income tax are prescribed by :-
Correct Answer The Finance Act
Select The Blank
Question If assessee owns more than one house properties, he can get benefit of nil annual value for any one house property ________.
Correct Answer As per his choice
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Multiple Choice Multiple Answer
Question Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving Scheme by :-
Correct Answer An individual , A HUF
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has availed the exemption only once or has not availed any exemption at all, in the block of four years i.e. 1998- 2001 then :-
Correct Answer He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.
True/False
Question Loss under the head Profits from Business or Profession can be adjusted against the Income from Salaries.
Correct Answer False
Multiple Choice Single Answer
Question The amount paid by the employer to the employee on his retirement is taxed as :-
Correct Answer Income from Salaries
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant previous year for the purpose of employment has to be in India for ________ days or more during previous year.
Correct Answer 182
True/False
Question Bad Debts recovered not allowed as deduction in earlier years is not
taxable in any year.
Correct Answer True
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees before 15th March of Previous year is :-
Correct Answer 100% of advance tax payable
Multiple Choice Multiple Answer
Question An assessee can claim deduction under section 35 in relation to the
expenditure incurred on scientific research in the field of natural gas or applied sciences if :-
Correct Answer Any revenue expenses incurred by the assessee for carrying out the scientific research provided that such research is related to his business , Any capital expenses incurred by the assesse himself for carrying out the scientific research provided that such research is related to his business , The assesse is a company engaged in the business of bio-technology or any other notified product a weighted deduction of 150% is
allowed in respect of in-house research and development expensed, till 31st March, 2005
Select The Blank
Question Registration charges in connection with the increasing of ________ share capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
True/False
Question If a person is required to quote the PAN and he quotes or intimates a false number then he may be liable to pay a penalty of Rs. 25000.
Correct Answer False
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from unrecognized provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"
Select The Blank
Question If the person responsible for deducting the tax at source and paying the same to the credit of Central Government has not been allotted the Tax Deduction Account Number (TAN), he shall within ________ from the end of the month in which the tax was deducted, apply for the allotment of TAN Number.
Correct Answer One month
Match The Following
Question- Correct Answer
Deduction in case of permanent physical disability- Section 80U
Deductions for Donations Paid -Section 80G
Deduction for Rent Paid- Section 80GG
Deduction in respect of Interest on Bank Deposits -Section 80L
True/False
Question If the capital asset becomes the property of the assessee by virtue of gift or will, the period for which the capital asset is held by the previous owner should be excluded while deciding the holding period.
Correct Answer False
True/False
Question Amount paid by the employer in respect of any leave standing to the credit of the employee after the date of furnishing return of income, this sum was payable in the previous year is allowed as deduction.
Correct Answer False
Select The Blank
Question Under section 43B, Clause N0-21 provides that the details of various
payments are allowed as deductions only if they are actually paid but, where if the assessee follows the ________, the payments can be claimed on due basis.
Correct Answer Mercantile system of accounting
True/False
Question A woman assessee below the age of 65 years is also entitled to rebate u/s 88.
Correct Answer True
Multiple Choice Multiple Answer
Question Income received by following assesses is taxable in India :-
Correct Answer Resident , Non resident , Resident but not ordinary resident
Multiple Choice Single Answer
Question Any premium paid by the assessee by Cheque as an employer to effect or keep in force an insurance on the health of his employees is :-
Correct Answer Allowed as expenses while calculating profits from business and profession
Select The Blank
Question Where an assessee files or submits the returns as per provisions of section 139 or in response to the notice under section 142, the assessment officer undertakes ________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Assessee gets deduction of interest paid on borrowed capital even if he :-
Correct Answer Takes possession later on , Acquires later on
Match The Following
Question -Correct Answer
Perquisites -Indicate benefits or amenities provided by the employer to the employee, either free of cost or at the concessional rate
House Rent Allowance -This indicates the amount paid by the employer to the
employee to meet the expenditure for residential accommodation occupied by the employee
Retrenchment Compensation -Compensation received by a worker at the time of retrenchment
Traveling Allowance- Any allowance granted to meet the cost of travel on tour or on transfer of duty.
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting from :-
Correct Answer 1st April to 31st March
Multiple Choice Single Answer
Question If notified news agency distributes its income amongst its members then :-
Correct Answer Whole of its income will be taxable
Multiple Choice Single Answer
Question Deduction in respect of Contribution to certain pension funds u/s 80CCC is available to :-
Correct Answer Individuals
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Multiple Choice Multiple Answer
Question In case of Payment of Interest on Securities no tax is required to be
deducted under the following circumstances :-
Correct Answer If the debentures are issued by a widely held company and the
debentures are listed on a stock exchange and if the amount of interest does not exceed
Rs. 2,500 during the financial year. , If the interest paid is on State or Central
Government Securities, If the debentures are issued by an institution, authority, Public
Sector Company or cooperative society as the Central Government may notify.
Select The Blank
Question Expenditure incurred by an assessee on advertisement in any brochure, tract, pamphlet or like published by a ________shall not be allowed as business expenditure.
Correct Answer Political party
http://scdlexampapers.blogspot.com
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government employees is included in their salaries and the deduction is allowed to the extent of least of the following amounts :-
Correct Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 , 1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down Value (WDV) method as well as straight line method for the computation of depreciation u/s 32 this act.
Correct Answer False
Multiple Choice Multiple Answer
Question Profits earned by an Industrial Undertaking engaged in other than
infrastructure development is available under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage , Company engaged in scientific and industrial research
Multiple Choice Single Answer
Question Which of the following expenditure is in the nature of revenue
expenditure?
Correct Answer Expenditure incurred as discount on issue of debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to include in income from other sources.
Correct Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset will be considered to be a part of cost of acquisition.
Correct Answer True
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions under
Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-
Correct Answer Rs. 18,000
Multiple Choice Single Answer
Question Interest on specified securities or premium on redemption is exempt for :-
Correct Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes both tangible as well as intangible assets.
Correct Answer True
Multiple Choice Multiple Answer
Question Deductions in respect of Certain Incomes received under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be classified into :-
Correct Answer Perquisites which are taxable in case of all types of employees ,Perquisites which are taxable only in the hands of specified employee
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant previous year for the purpose of employment has to be in India for ________ days or more during previous year.
Correct Answer 182
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Select The Blank
Question ________ of the Tax Audit Report refers to the details of various
payments which are allowed as deduction only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting from :-
Correct Answer 1st April to 31st March
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Multiple Choice Single Answer
Question If an employee does not avail of this leave travel concession or assistance during a block of four calendar years :-
Correct Answer Only one journey can be carried forward to the next block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to the assessing officer.
Correct Answer Form No. 49A
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54F is for Capital Gains
arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Select The Blank
Question Where an assessee files or submits the returns as per provisions of section 139 or in response to the notice under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Income of a professional association is exempt if its objectives are :-
Correct Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and profession, the business or
profession must be carried out during the previous year.
Correct Answer True
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has availed the exemption only once or has not availed any exemption at all, in the block of four years i.e. 1998- 2001 then :-
Correct Answer He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the employee's provident fund account is paid at the time of :-
Correct Answer Retirement , Resignation
Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxes
Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Multiple Choice Multiple Answer
Question From GTI of a company following deductions under chapter VI A are
allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from projects outside India , 80 IA profits and gains of infrastructure companies
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard Deduction will be
Rs.________.
Correct Answer 20000
Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs purchased in the earlier
years is assumed to be reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10 consequent assessment years from the year of commencement of production.
Correct Answer 10
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the ________ .
Correct Answer Permanent physical disability
Match The Following
Question- Correct Answer
Disallowable Expenditure -Litigation Expenses in connection with recovery of a debt which is not a trading debt
Business Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture
Profession- Includes vocation
Capital Expenditure -Expenditure incurred by a company with the issue of rights shares
True/False
Question Any recreational facility provided by the employer to a group of
employees (not being restricted to a select few employees) is not exempt from tax.
Correct Answer False
True/False
Question In case of deductions for medical treatment under Section 80DDB the amount of deduction will be reduced by the amount received under an insurance policy or the amount reimbursed by the employer.
Correct Answer True
True/False
Question Any advance tax paid before 31st March is treated as advance tax paid during the previous year.
Correct Answer True
Multiple Choice Single Answer
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees from the private sector is taxable in the hands of the employee.
Correct Answer True
Match The Following
Question -Correct Answer
Any subscription made to National Saving Scheme -By an individual or a HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-2006. RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Multiple Choice Multiple Answer
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the asessee should invest the whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term
capital asset
True/False
Question Income from partnership firms is exempt from taxation for the partners
Correct Answer True
Taxation - A01
Multiple Choice Single Answer
Question Foreign allowance received by an Indian national is exempt if it is paid by
Correct Answer Government of India
Multiple Choice Multiple Answer
Question For the purpose of section 80IA, the term eligible business means :-
Correct Answer Developing, maintaining or operating any infrastructure facility
where the term infrastructure facility means a road (including a toll road, a bridge or a
rail system) or a highway project or a water supply project. , Developing, maintaining or
operating an industrial park or special economic zones notified by the Central
Government , Generation or distribution of power
True/False
Question For being resident of India, a person must be citizen of India.
Correct Answer False
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form No. 2C is
Correct Answer 31st October of the respective Assessment year
Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs purchased in the earlier
years is assumed to be reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
True/False
Question A person who is a Senior Citizen who has attained the age of 65 years is
not entitled to the rebate u/s 88 of the Act.
Correct Answer False
Multiple Choice Single Answer
Question The total amount of rebates under Section 88, Section 88B, Section 88C
and Section 88D of the Act. shall :-
Correct Answer Not exceed the amount of tax calculated on the total income.
True/False
Question A company is resident of India if in any previous year it is an Indian
Company even though control & management are situated outside India.
Correct Answer False
Multiple Choice Multiple Answer
Question From GTI of a company following deductions under chapter VI A are
allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from projects outside
India , 80 IA profits and gains of infrastructure companies
True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of the
company carried out, the report of such audit should be enclosed to the Tax Audit Report.
Correct Answer True
Match The Following
Question- Correct Answer
Deductions of Rent, Rates, Repairs, Taxes and Insurance on Buildings are available
u/s 30 u/s 30-
Deduction of Depreciation is available u/s 32 u/s 32
General deductions are allowed as deductions while calculating profits from business and
profession u/s 37 u/s 37
Deductions of Repairs & maintenance of machinery, plant & furniture are available
u/s 31 u/s 31
Multiple Choice Single Answer
Question In case of any contribution made by an individual or a HUF to notified
units of any approved mutual fund or of Unit Trust of India in accordance with a notified
scheme (Equity Linked Savings Scheme) :-
Correct Answer The maximum allowable limit is Rs. 10,000
True/False
Question The value of benefit resulting from the payment made by the employer in
a club for any expenditure incurred by the employee shall be taken as perquisites unless
the said expenses are incurred wholly and exclusively for official purposes.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the treatment of principal amount of loan borrowed for the
purchase or construction of a residential house?
Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
True/False
Question Rebates as per the provisions of Section 88 of the Act are not available
from the tax on longterm capital gains.
Correct Answer True
Multiple Choice Multiple Answer
Question Following specific incomes are taxable under the heading income from
other sources :-
Correct Answer Winning from betting , Interest on securities of local authority ,
Bonus from key man insurance policy
True/False
Question Deductions available as per the provisions of Chapter VI of the Act are not
available for the long-term capital gains.
Correct Answer True
True/False
Question Income earned & received outside India & remitted to India is taxable for
resident & ordinary resident
Correct Answer True
Multiple Choice Single Answer
Question What is the due date for filing Annual return for TDS from Salaries?
Correct Answer 30th June of Assessment Year
Multiple Choice Multiple Answer
Question The least of the following is the exemption available to an employee if he
is in receipt of house rent allowance :-
Correct Answer 50% of the Salary where such accommodation is situated in
Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation is
situated at any other place. , Actual amount of HRA received by the employee. , Excess
of rent paid over 10% of the Salary.
Select The Blank
Question If the CC of the engine is more than 1..6 liters and the motor car is owned
or hired by the employer and is used partly of official and partly for personal purposes
and if running and maintenance expenses are borne by the employee then the value of
perquisite will be Rs.________ per month plus Rs.600 if car is chauffer driven car.
Correct Answer 600
Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness Allowance
and Bonus / Commission is :-
Correct Answer Fully taxable.
Multiple Choice Multiple Answer
Question Under the clause No-32 of the Act, in the Tax Audit Report, the Auditor is
required to give the accounting calculation in ratios of :-
Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover
Multiple Choice Single Answer
Question If taxable income is less than 7.5% of book profit, income tax is payable
@ of :-
Correct Answer 0.1
Select The Blank
Question In case of foreign companies rate of tax is ________.
Correct Answer 0.35
True/False
Question Interest is payable by the assessee for not paying the Advance tax or if the
Advance tax paid by the assessee is less than 80% of the Assessed tax after adjusting the
amount of TDS and Advance tax Paid
Correct Answer False
Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be classified into :-
Correct Answer Perquisites which are taxable in case of all types of employees ,
Perquisites which are taxable only in the hands of specified employee
Multiple Choice Single Answer
Question Loss from owning and maintaining race horses can be adjusted against :-
Correct Answer Only the income arising out of the same activity
Multiple Choice Single Answer
Question Municipal taxes are payable on :-
Correct Answer Municipal valuation
True/False
Question Dividend received from domestic company to its shareholders is taxable in
the hands of the shareholder.
Correct Answer False
Select The Blank
Question Company means any ________ Company.
Correct Answer Indian
Multiple Choice Multiple Answer
Question Section 35D applies to the preliminary expenses incurred by a company,
which consists of :-
Correct Answer Expenditure in connection with the preparation of
feasibility/project report, engineering services, or conducting market survey , Legal
charges and fees for registering the company as per the provisions of company Act, 1956
, Charges in connection with drafting and printing of memorandum of association and
Articles of Association
Multiple Choice Multiple Answer
Question Perquisites which are taxable only in the hands of specified employee
include the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal consumption
Select The Blank
Question Loss under the head Income from Capital Gains, to the extent it is long
term capital loss can be carried forward and set off in the subsequent Assessment Years
against the ________ subject to the limit of 8 Assessment years.
Correct Answer Long term Capital Gains
Multiple Choice Single Answer
Question For charging the income in the form of salaries :-
Correct Answer There needs to be an employer-employee relationship between the
payer and the payee.
True/False
Question The amount of telephone bills (including the mobile phone bills) of the
employee reimbursed by the employer is exempt from tax.
Correct Answer True
True/False
Question The amount of expenses including membership fees and annual fees
incurred by the employee on credit card and which are paid by the employer shall be
added as the perquisites unless the said expenses are incurred wholly and exclusively for
official purposes.
Correct Answer True
Multiple Choice Single Answer
Question The amount of advance tax payable by corporate assessees before 15th
September of Previous year is :-
Correct Answer 45% of advance tax payable
Multiple Choice Single Answer
Question As per which provision and section, every person, company or any other
person shall furnish his returns of income in the prescribed form on or before the
specified due date?
Correct Answer Section 139(1)
Select The Blank
Question ________ is the tax payable on the manufacturing of goods.
Correct Answer Excise duty
Multiple Choice Single Answer
Question The return of income is required to be filed by all the companies, except
those covered under section 25 of the companies Act,1956 in the :-
Correct Answer Form No. 1
Match The Following
Question -Correct Answer
Disallowable Expenditure- Litigation Expenses in connection with recovery of a debt
which is not a trading debt.
Business Includes trade, commerce, or manufacture or any adventure or concern in
the nature of trade, commerce or manufacture Includes trade
Profession -Includes vocation
Capital Expenditure -Expenditure incurred by a company with the issue of rights shares
Multiple Choice Single Answer
Question The sum total of all the heads of income clubbed together gives the
amount of :-
Correct Answer Gross Total Income
Select The Blank
Question Short term Capital Gains is taxed at ________.
Correct Answer Normal Tax rates
Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxes
Multiple Choice Multiple Answer
Question The rebate u/s 88 is available to an :-
Correct Answer Individual , Hindu Undivided Family.
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form No. 2C is
Correct Answer 31st October of the respective Assessment year
Multiple Choice Single Answer
Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Multiple Choice Single Answer
Question As per which provision and section, every person, company or any other
person shall furnish his returns of income in the prescribed form on or before the
specified due date?
Correct Answer Section 139(1)
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax
rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving Scheme by :-
Correct Answer An individual , A HUF
Multiple Choice Multiple Answer
Question For the purpose of taxability of perquisite a specified employee means :-
Correct Answer The person who is director of a company , The employee who has
substantial interest in the company by having 20% or more of the voting power , The
employee whose income under the head salaries (including all the taxable monetary
payments of salary but excluding the value of any non-monetary benefits or perquisites),
after allowing deductions under Section 16, exceeds Rs. 50,000
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
True/False
Question Deduction u/s 80E for repayment of loan taken for higher education is
available if the loan must have borrowed by the assessee himself or his Father
Correct Answer False
True/False
Question The consideration for transfer of Capital Asset is received by the transferor is
not material while Capital gain chargeable to tax.
Correct Answer True
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of the Act
provides that the said provisions will not apply to the loans or deposits accepted by :-
Correct Answer Banking company including cooperative bank and post office savings
bank , Government , Government company
Match The Following
Question- Correct Answer
Employee stock option plan- ESOPS
Uncommuted Pension- Indicates the periodical payment of pension
Commuted Pension -Indicates the lump sum received in lieu of the periodical
Treatment of Perquisite- Taxed in the hands of employee as taxable salary
True/False
Question A person who is a Senior Citizen who has attained the age of 65 years is not
entitled to the rebate u/s 88 of the Act.
Correct Answer False
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the assessee should invest the
whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term capital
asset
Select The Blank
Question Unabsorbed business loss can carried forward and set off in the subsequent
Assessment Years subject to the time limit of ________ Assessment years.
Correct Answer 8
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions under Chapter
VI-A is Rs. 2,40,000 wants to make the investments in the following alternative forms
Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Correct Answer Rs. 15,000
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
http://scdlexampapers.blogspot.com
Match The Following
Question -Correct Answer
Any subscription made to- National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF is
eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during
the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI
on 10th June 2004. His tax liability for the A Y 2005-2006.
RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total
Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs.
10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank
Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone
Select The Blank
Question Non resident individual satisfies ________ of the basic conditions.
Correct Answer None
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54 is for Capital Gains arising
from transfer of :-
Correct Answer House Property
Select The Blank
Question Deduction for remuneration from foreign sources for professors, teachers etc
under Section 80R is limited to ________% of such remuneration brought in India.
Correct Answer 15
Select The Blank
Question Relief under section 89 is available to an employee in respect of the amount
of salary received ________.
Correct Answer In advance or in arrears
Select The Blank
Question AOP id formed when two or more ________ come together to earn income.
Correct Answer Persons
Multiple Choice Multiple Answer
Question Capital Gains arise on account of excess of transfer consideration over the
following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred
wholly and exclusively in connection with the transfer
Multiple Choice Multiple Answer
Question Which of the following amounts credited to P & L Account but not taxable
from Income tax Purposes as Profits from Business and Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
True/False
Question Rebates as per the provisions of Section 88 of the Act are not available from
the tax on long-term capital gains.
Correct Answer True
Select The Blank
Question If assessee owns more than one house properties, he can get benefit of nil
annual value for any one house property ________.
Correct Answer As per his choice
Multiple Choice Single Answer
Question What is the treatment of principal amount of loan borrowed for the purchase
or construction of a residential house?
Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Multiple Choice Multiple Answer
Question The provisions for payment of gratuity is not allowed under section 40A(7)
but, under the head, profits from business and profession, the amount of gratuity will be
allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to the employees
during the previous year , The provision has been made for the payment of a sum by way
of contribution to an approval gratuity , The other than the above two situations, any
provision made for the payment of gratuity is not allowed as deduction
Multiple Choice Multiple Answer
Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least of
the following :-
Correct Answer 40% of the Salary , Rs. 30,000
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees before 15th
December of Previous year is :-
Correct Answer 60% of advance tax payable
Select The Blank
Question It should be noted that the tax liability of an individual having the total
income of less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000
True/False
Question If assessee owns more than one house properties, annual value of any one of
the house property can be treated as nil, and such option can be changed year on year
basis.
Correct Answer True
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Multiple Choice Multiple Answer
Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent of
NRI
Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of news
Select The Blank
Question The rebate u/s 88B is available to an individual who has attained the age of
________ or more at any time during the previous year.
Correct Answer 65
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from unrecognized
provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from salaries"
True/False
Question Any advance tax paid before 31st March is treated as advance tax paid during
the previous year.
Correct Answer True
True/False
Question A woman assessee below the age of 65 years is also entitled to rebate u/s 88.
Correct Answer True
Multiple Choice Single Answer
Question Rent for other amenities like lift, electricity, telephone etc. is taxed under the
heading :-
Correct Answer Income from other sources
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees before 15th
June of Previous year is :-
Correct Answer Nil
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government employees is
included in their salaries and the deduction is allowed to the extent of least of the
following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
True/False
Question Loss from house property can be adjusted against the income from any other
house property.
Correct Answer True
True/False
Question Annual premium paid by the employer for the accident insurance policy
taken by the employer in the name of the employee is chargeable to tax.
Correct Answer False
Multiple Choice Single Answer
Question Annual return for TDS from Salaries is to be filed in :-
Correct Answer Form No. 24
Select The Blank
Question For an individual as a citizen of India who leaves India in the
relevant previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form
No. 2C is
Correct Answer 31st October of the respective Assessment year
Multiple Choice Single Answer
Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Multiple Choice Single Answer
Question As per which provision and section, every person, company or any
other person shall furnish his returns of income in the prescribed form on or
before the specified due date?
Correct Answer Section 139(1)
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can
claim tax rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving
Scheme by :-
Correct Answer An individual , A HUF
Multiple Choice Multiple Answer
Question For the purpose of taxability of perquisite a specified employee
means :-
Correct Answer The person who is director of a company , The employee
who has substantial interest in the company by having 20% or more of the
voting power , The employee whose income under the head salaries (including
all the taxable monetary payments of salary but excluding the value of any nonmonetary
benefits or perquisites), after allowing deductions under Section 16,
exceeds Rs. 50,000
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes exempt from
tax :-
Correct Answer Town planning , Company secretary , Accounting
True/False
Question Deduction u/s 80E for repayment of loan taken for higher
education is available if the loan must have borrowed by the assessee himself
or his Father
Correct Answer False
True/False
Question The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of
the Act provides that the said provisions will not apply to the loans or deposits
accepted by :-
Correct Answer Banking company including cooperative bank and post
office savings bank , Government , Government company
Match The Following
Question- Correct Answer
Employee stock option plan- ESOPS
Uncommuted Pension- Indicates the periodical payment of pension
Commuted Pension- Indicates the lump sum received in lieu of the
periodical
Treatment of Perquisite -Taxed in the hands of employee as taxable salary
True/False
Question A person who is a Senior Citizen who has attained the age of 65
years is not entitled to the rebate u/s 88 of the Act.
Correct Answer False
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the assessee should
invest the whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term
capital asset
Select The Blank
Question Unabsorbed business loss can carried forward and set off in the
subsequent Assessment Years subject to the time limit of ________
Assessment years.
Correct Answer 8
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions
under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the
following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure
Bonds. The amount of rebate available to him u/s 88 is :-
Correct Answer Rs. 15,000
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Match The Following
Question- Correct Answer
Any subscription made to National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 By an individual or a
HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs.
2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the
tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y
2005-2006.
RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross
Total Income of Rs. 1,45,000 including the dividend from Indian companies
amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said
Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank
Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone
Select The Blank
Question Non resident individual satisfies ________ of the basic conditions.
Correct Answer None
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54 is for Capital
Gains arising from transfer of :-
Correct Answer House Property
Select The Blank
Question Deduction for remuneration from foreign sources for professors,
teachers etc under Section 80R is limited to ________% of such remuneration
brought in India.
Correct Answer 15
Select The Blank
Question Relief under section 89 is available to an employee in respect of the
amount of salary received ________.
Correct Answer In advance or in arrears
Select The Blank
Question AOP id formed when two or more ________ come together to earn
income.
Correct Answer Persons
Multiple Choice Multiple Answer
Question Capital Gains arise on account of excess of transfer consideration
over the following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure
incurred wholly and exclusively in connection with the transfer
Multiple Choice Multiple Answer
Question Which of the following amounts credited to P & L Account but not
taxable from Income tax Purposes as Profits from Business and Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
True/False
Question Rebates as per the provisions of Section 88 of the Act are not
available from the tax on long-term capital gains.
Correct Answer True
Select The Blank
Question If assessee owns more than one house properties, he can get benefit
of nil annual value for any one house property ________.
Correct Answer As per his choice
Multiple Choice Single Answer
Question What is the treatment of principal amount of loan borrowed for the
purchase or construction of a residential house?
Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Multiple Choice Multiple Answer
Question The provisions for payment of gratuity is not allowed under section
40A(7) but, under the head, profits from business and profession, the amount of
gratuity will be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to the
employees during the previous year , The provision has been made for the
payment of a sum by way of contribution to an approval gratuity , The other
than the above two situations, any provision made for the payment of gratuity is
not allowed as deduction
Multiple Choice Multiple Answer
Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be
the least of the following :-
Correct Answer 40% of the Salary , Rs. 30,000
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th December of Previous year is :-
Correct Answer 60% of advance tax payable
Select The Blank
Question It should be noted that the tax liability of an individual having the
total income of less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000
True/False
Question If assessee owns more than one house properties, annual value of
any one of the house property can be treated as nil, and such option can be
changed year on year basis.
Correct Answer True
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Multiple Choice Multiple Answer
Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee ,
Agent of NRI
Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of
news
Select The Blank
Question The rebate u/s 88B is available to an individual who has attained
the age of ________ or more at any time during the previous year.
Correct Answer 65
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from
unrecognized provident fund on the retirement or resignation or death of the
employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest
on employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income from
salaries"
salaries"
True/False
Question Any advance tax paid before 31st March is treated as advance tax
paid during the previous year.
Correct Answer True
True/False
Question A woman assessee below the age of 65 years is also entitled to
rebate u/s 88.
Correct Answer True
Multiple Choice Single Answer
Question Rent for other amenities like lift, electricity, telephone etc. is taxed
under the heading :-
Correct Answer Income from other sources
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th June of Previous year is :-
Correct Answer Nil
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government
employees is included in their salaries and the deduction is allowed to the
extent of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
True/False
Question Loss from house property can be adjusted against the income from
any other house property.
Correct Answer True
True/False
Question Annual premium paid by the employer for the accident insurance
policy taken by the employer in the name of the employee is chargeable to tax.
Correct Answer False
Multiple Choice Single Answer
Question Annual return for TDS from Salaries is to be filed in :-
Correct Answer Form No. 24
Select The Blank
Question Monetory Limit for deduction for royalty income of authors under Section
80QQB is Rs.________.
Correct Answer 300000
Multiple Choice Single Answer
Question Income from winning from lotteries / crossword puzzles/ horse races is
taxed at flat rate of :-
Correct Answer 0.3
Taxation - Book Reference
| Taxation | ||
|---|---|---|
| sl no. | Unit 1: Definitions under Income Tax Act,1961 | pg no. |
| 1 | introduction | 2 |
| 2 | definitions under act | 2 |
| 3 | assessment year and previous year | 2 |
| 4 | person | 3 |
| 5 | assessee | 3 |
| 6 | total income | 4 |
| 7 | rates of taxes | 5 |
| 8 | for firms | 6 |
| 9 | for companies | 6 |
| 10 | residential statues | 6 |
| 11 | individual | 6 |
| 12 | resident and ordinarily resident ROR | 6 |
| 13 | basic conditions | 7 |
| 14 | additional conditions resident but not-ordinarily resident RNOR | 7 |
| 15 | nonresident NR | 7 |
| 16 | partnership firms | 7 |
| 17 | company | 8 |
| 18 | incidence of tax and residential status- section 5 | 8 |
| 19 | resident and ordinarily resident section 5(1) | 8 |
| 20 | resident but not ordinarily resident section 5(1) | 8 |
| 21 | non-resident | 9 |
| 22 | types of income status | 9 |
| 23 | accrual of income | 10 |
| 24 | income received in India-section 7 | 10 |
| 25 | income deemed to be receives in India-section 7 | 10 |
| 26 | income which are deemed to accrue or arise in India section 9 | 11 |
| Unit 2:- Income exempt from tax | ||
| 1 | incomes exempt under section 10 of the act | 20 |
| 2 | agriculture income -section 10(1) | 20 |
| 3 | share of profit of a partner form a firm- section 10(2A) | 20 |
| 4 | interest on securities or bonds held by a non-resident or interest or nonresident external ) account-section 10(4) | 20 |
| 5 | foreign allowance -section 10(7) | 20 |
| 6 | amount received under a life insurance policy-section 10(101) | 21 |
| 7 | interest, premium or bonus on specified investments-section 10(15) | 21 |
| 8 | educational scholarship-section 10(16) | 21 |
| 9 | payment to MPs,MLAs etcsection 10(17) | 21 |
| 10 | pension to gallantry award winners section 10(18) | 22 |
| 11 | family pension under certain circumstances section 10(19) | 22 |
| 12 | property in possession of a former ruler section 10(19A) | 22 |
| 13 | income of a local authority section 10(20) | 22 |
| 14 | income of a specified news agency-section 10(22B) | 22 |
| 15 | income of a professional institutions section 10(23A) | 23 |
| 16 | income of a mutual fund-section 231 | 23 |
| 17 | income of a venture capital fund-section 10(23FB) | 23 |
| 18 | income of trade union-section 10(24) | 24 |
| 19 | educational scholarship-section 10(16) | 24 |
| 20 | income of employees state insurance fund section 10(25A) | 24 |
| 21 | capital gain arising from the transfer of units of UTI-section 10(33) | 24 |
| 22 | dividend received from a domestic company-section 10(34) | 25 |
| 23 | some other exemptions | 25 |
| 24 | income from mutual fund section 10(35) | 25 |
| 25 | capital gains due to compulsory acquisition of agricultural lamnd-sectionm10(37) | 25 |
| 26 | long term capital gains from the transfer of securities section 10(38) | 25 |
| 27 | occasional income of gifts-section 10(39) | 26 |
| 28 | newly established undertakings in free trade zones, software technology park etc-section 10A | 27 |
| 29 | free trade zones | 27 |
| 30 | kandla free trade zone | 27 |
| 31 | madras export processing zone | 27 |
| 32 | santacruz electronics export processing zone | 27 |
| 33 | cochin export processing zone | 27 |
| 34 | noida export processing zone | 27 |
| 35 | electronic hardware technology park | 27 |
| 36 | software technology park | 28 |
| 38 | income of 100% export oriented unitssection 10B | 29 |
| 37 | specific income exempt from tax | 30 |
| 39 | income of political party-section 13A | 30 |
| 40 | specific income exempt from tax | 30 |
| 41 | agriculture income | 30 |
| 42 | tax treatment of agriculture income | 30 |
| Unit 3:-Income from salaries | ||
| 1 | wages | 38 |
| 2 | annuity | 38 |
| 3 | profits in lieu of salary | 38 |
| 4 | section 17(3) | 38 |
| 5 | terminal compensation | 39 |
| 6 | amount fro m unrecognized provident fund or unrecognized superannuation | 39 |
| 7 | amount received under keyman insurance policy | 39 |
| 8 | basis charge section-15 | 39 |
| 9 | exceptions | 40 |
| 10 | surrender of salary | 40 |
| 11 | foregoing salary | 41 |
| 12 | place of accrual section 9(1) | 41 |
| 13 | arrears of salary | 41 |
| 14 | basis of accounting | 41 |
| 15 | exempt income | 41 |
| 16 | bonus | 42 |
| 17 | exemptions section 10(5) to 10(14) | 42 |
| 18 | section 10(5):leave travel concession | 42 |
| 19 | family | 42 |
| 20 | section 10(10) gratuity | 43 |
| 21 | government employee | 43 |
| 22 | employees covered by the payment of gratuity Act 1972 | 43 |
| 23 | any other employee | 44 |
| 24 | pension section 10(10A) | 44 |
| 25 | uncommitted pension | 44 |
| 26 | commuted pension | 44 |
| 27 | leave salary section 10(10AA) | 45 |
| 28 | retrenchment compensation section 10(10B) | 46 |
| 29 | voluntary retrenchment/separation scheme section 10(10C) | 47 |
| 30 | exemption | 47 |
| 31 | guideline provided in rule 2BA | 48 |
| 32 | provident fund | 48 |
| 33 | types of provident fund | 49 |
| 34 | statutory provident fund | 49 |
| 35 | recognized provident fund | 49 |
| 36 | unrecognized provident fund | 49 |
| 37 | tax treatment | 49 |
| 38 | statutory provident fund | 49 |
| 39 | recognized provident fund | 49 |
| 40 | unrecognized provident fund | 49 |
| 41 | superannuation fund section 10(13) | 50 |
| 42 | house rent allowance HRA | 50 |
| 43 | special allowances-section 10(14) | 51 |
| 44 | allowances that are full taxable | 52 |
| 45 | prerequisites-section 17(2) and rule 3 | 53 |
| 46 | employees stock option plan-ESOP | 54 |
| 47 | rent free unfurnished accomodation:section 17(2)(1)rule 3(1) | 54 |
| 48 | hotel accommodation | 55 |
| 49 | furnished accommodation | 57 |
| 50 | accommodation at concession rate-section 17(2)B | 57 |
| 51 | domestic servant | 58 |
| 52 | gas, electric energy water supply for household consumption | 58 |
| 53 | prerequisites in respect of educational facilities | 59 |
| 54 | other fringe benefits or amenities section 17(2) | 59 |
| 55 | interest free or confessional loan made available for employees or any member of his household | 59 |
| 56 | use of movable assets | 60 |
| 57 | transfer of employers movable asset section 17(2) | 60 |
| 58 | medical facility proviso to section 17(2) | 60 |
| 59 | medical facility outside India | 61 |
| 60 | prerequisites exempt from tax | 61 |
| 61 | deductions section 16 | 62 |
| 62 | entertainment allowance 16(ii) | 62 |
| 63 | professional tax | 62 |
| Unit 4:-Income from house property and other sources | ||
| 1 | scope section 22 | 76 |
| 2 | related case law | 76 |
| 3 | Chelmsford club V CIT 2002 SC | 76 |
| 4 | essential conditions for taxing income under this head | 77 |
| 5 | deemed ownership under section 27 | 78 |
| 6 | transfer to a spouse and child section 27(i) | 78 |
| 7 | holder of an impartial estate section 27(ii) | 78 |
| 8 | members of a cooperative society etc section 27(iii) | 78 |
| 9 | person in possession of property section 27(iia) | 78 |
| 10 | person having right in property for a period not less than 12 ears section (iiib) | 78 |
| 11 | determination of annual value | 78 |
| 12 | actual rent received or receivable | 78 |
| 13 | municipal value | 79 |
| 14 | fair rent of the property | 79 |
| 15 | standard rent | 79 |
| 16 | classification of the house property | 81 |
| 17 | house property which is let out throughout the year | 81 |
| 18 | municipal value | 81 |
| 19 | fair rental value | 81 |
| 20 | property which is let out but remains vacant for whole or part of the year | 82 |
| 21 | self-occupied property | 83 |
| 22 | property which is let out for part of the year and self-occupied for part of the year | 83 |
| 23 | more than one self occupied properties | 84 |
| 24 | deductions from income from house proper under section 24 | 86 |
| 25 | computation of income of a property | 86 |
| 26 | deduction under section 24 | 86 |
| 27 | inadmissible expenses section 25 | 87 |
| 28 | unrealized rent if realized subsequently | 87 |
| 29 | unrealized rent if realized subsequently | 87 |
| 30 | co-ownership-section26 | 87 |
| 31 | income from other sources section 56 | 88 |
| 32 | deductions from income from other sources | 89 |
| 33 | inadmissible expenses section 58 | 89 |
| Unit 5:-Profit and gains from business and profession | ||
| 1 | expenses allowed as deductions-section 30 to section 37 | 106 |
| 2 | rent,rates,repairs, taxes and insurance on building-section 30 | 106 |
| 3 | repairs and maintenance of machine ,plant and furniture section 31 | 106 |
| 4 | depreciation section 32 | 107 |
| 5 | other sections | 107 |
| 6 | other deductions section 36 | 107 |
| 7 | general deductions-section 37(1) | 108 |
| 8 | capital expenditure vs. revenue expenditure | 190 |
| 9 | business expenditure | 111 |
| 10 | allowable expenditure | 111 |
| 11 | disallowable expenditure | 112 |
| 12 | expenditure not allowed as deductions | 112 |
| 13 | section 40a | 112 |
| 14 | section 40b | 113 |
| 15 | section 40A2 | 113 |
| 16 | if the assessee is an individual | 113 |
| 17 | if the assessee is a company | 114 |
| 18 | if the assessee is a firm | 114 |
| 19 | meaning of substantial interest | 114 |
| 20 | section 40A(3) | 115 |
| 21 | section 40A(7) | 115 |
| 22 | section 43B | 115 |
| 23 | allowability of certain expenditure | 117 |
| 24 | computation of profits from business and profession | 118 |
| 25 | profits as per profit and loss account | 118 |
| Unit 6:-Capital gains | ||
| 1 | charging section-section 45 | 160 |
| 2 | capital asset | 160 |
| 3 | short term/ long term capital asset | 161 |
| 4 | period of holding-the period of holding in respect of capital assets is determined as follows | 161 |
| 5 | period of holding in case of shares or securities | 161 |
| 6 | transaction not regarded as transfer | 163 |
| 7 | from the assessment year 2008-09 | 165 |
| 8 | previous ear in which capital gains are chargeable to tax | 168 |
| 9 | transfer of capital asset section 2(47) | 169 |
| 10 | calculation of capital gains-section 48 | 170 |
| 11 | cost of acquisition | 171 |
| 12 | normal cost of acquisition -section 49(1) | 173 |
| 13 | cost of inflation index or indexed cost of acquisition | 173 |
| 14 | cost of improvement or indexed cost of improvement | 176 |
| 15 | deduction from capital gains | 178 |
| 16 | capital gain from the transfer of residential house property-section 54 | 178 |
| 17 | capital gain account scheme 1988 | 178 |
| 18 | capital gains from transfer of agricultural land section 54b | 179 |
| 19 | capital gains if invested in certain bonds-section 54EC | 181 |
| 20 | capital gains arising from transfer of certain securities/ units section 54 ED | 182 |
| 21 | capital gains on the transfer of a long term capital asset other than a house property | 183 |
| 22 | capital gain | 184 |
| Unit 7:-Deductions from total income | ||
| 1 | basic rules for claiming the deduction | 198 |
| 2 | deduction s general | 198 |
| 3 | deduction in respect of life insurance premium, deferred annuity etc.section 80c | 198 |
| 4 | contribution to certain pension funds-section 80ccc | 202 |
| 5 | contribution to certain pension scheme of central government-section 80CCD | 202 |
| 6 | payment of medical insurance premium-section 80D | 203 |
| 7 | maintenance including medical treatment of dependents section 80DD | 203 |
| 8 | qualifying sum | 204 |
| 9 | medical treatment etc.section 80DDB | 204 |
| 10 | repayment of loan taken for higher education section 80E | 205 |
| 11 | donations paid section 80G | 205 |
| 12 | rent paid section 80GG | 209 |
| 13 | donations for scientific research or rural development section 80GGA | 211 |
| 14 | profits and gains from bio-degradable waste section80JJA | 212 |
| 15 | deduction in respect of employment of new workmen section 80JJAA | 213 |
| 16 | income of offshore banking units section 80LA | 213 |
| 17 | income of a person with disability section 80U | 214 |
| 18 | profits from infrastructural activity section 80JA | 215 |
| 19 | profits and gains from certain industrial undertakings other than infrastructure section 801B | 218 |
| 20 | industrial undertaking | 219 |
| 21 | operation of ship | 220 |
| 22 | hotel industry | 220 |
| 23 | company engaged in industrial and scientific research development | 221 |
| 24 | mineral oils and refining of mineral oil | 221 |
| 25 | developing and building housing projects | 221 |
| 26 | multiplex theatres | 222 |
| 27 | convention centre | 222 |
| 28 | integrated handling, storage and transportation of food grains or processing, preservation and packing of fruits or vegetables on or after1.04.2001 | 223 |
| 29 | operating and maintaining a hospital in rural areas | 223 |
| Unit 8:-Tax deducted at source, interest, rebates and relief | ||
| 1 | tax deductions at source-TDS | 230 |
| 2 | payment of salary sec.192 | 231 |
| 3 | computation of salary for the purpose of tax deduction | 231 |
| 4 | house rent allowance | 231 |
| 5 | deductions | 232 |
| 6 | rounding off | 232 |
| 7 | tax deduction at source from interest on securities-section 193 | 234 |
| 8 | securities not subject to tax deduction | 234 |
| 9 | payment of salary sec.192 | 234 |
| 10 | payment without tax deduction or with lower tax deduction | 235 |
| 11 | regimental fund | 236 |
| 12 | tax deduction at source from interest other than interest on securities section 194A | 236 |
| 13 | interest not subject to tax deduction | 237 |
| 14 | tax deduction at source from winnings from lotteries or crossword puzzles section 194B | 238 |
| 15 | tax deduction at source from winnings from horse races section 194BB | 239 |
| 16 | tax deduction at source from payment to contractors or sub0contractors-section 194C | 239 |
| 17 | specified person | 240 |
| 18 | payment without tax deducted under section 194C | 241 |
| 19 | tax deduction at source | 241 |
| 20 | from insurance commission section 194D | 241 |
| 21 | tax deduction at source from payment to nonresident sportsmen or sports association -section 194E | 242 |
| 22 | tax deduction at source from payment in respect of national savings scheme section 194EE | 243 |
| 23 | tax deduction at source from payment in respect of repurchase of units of mutual funds or UTI-section 194$E | 244 |
| 24 | tax deduction at source from commission or brokerage section 194H | 244 |
| 25 | when commission is retained by agent | 244 |
| 26 | tax deduction at source from rent-section 194-I | 244 |
| 27 | rent | 245 |
| 28 | tax deduction at source from payment of fees for professional or technical services | 246 |
| 29 | meaning of professional technical services | 246 |
| 30 | failure to deduct the tax at source | 247 |
| 31 | online tax accounting system | 247 |
| 32 | nature of default penalty | 247 |
| 33 | tax deduction account number (TAN)-section 203 A | 248 |
| 34 | advance tax | 248 |
| 35 | when the tax is payable | 248 |
| 36 | failure to pay the advance tax | 249 |
| 37 | self-assessment tax | 249 |
| 38 | interest | 249 |
| 39 | interest payable for default in furnishing return of income.sec 234 A | 249 |
| 40 | when interest is paid on the income determined under section 143(3) or 144 and interest for delayed filling of return is already paid under section 104 A | 250 |
| 41 | interest for default in payment of advance tax. Section 234 B | 250 |
| 42 | if tax is paid on or after April 1 of the assessment year | 251 |
| 43 | interest for deferment of advance tax | 253 |
| 44 | in case of non-company assessee | 254 |
| 45 | short payment of advance tax in case of capital gains or casual income | 255 |
| 46 | interest on excess refund. section 234 D,applicable from June 1,2003 | 255 |
| 47 | interest for making late payment of income tax. section 220 | 256 |
| 48 | reduction or waiver of interest by CCIT/CIT | 256 |
| 49 | cancellation of assessment order | 256 |
| 50 | assessment original made varied or set aside but restored on the further appeal | 256 |
| 51 | interest for failure to deduct and pay tax at source. section 201(1A) | 257 |
| 52 | rebate in respect of securities transaction tax | 257 |
| 53 | rebates to a member of an association of persons. section 86 | 257 |
| 54 | relief for arrears of salary. section 89(1) | 258 |
| 55 | relief for arrears of salary or in advance salary.rule 21 A(2) | 258 |
| 56 | computation of relief in respect of gratuity. rule 21A(3) | 258 |
| 57 | computation of relief in respect of compensation on termination of employment rule 21 A (4) | 259 |
| 58 | computation of relief in respect of payments in commutation of pension rule21A(S) | 259 |
| 59 | computation of relief in respect of other payments 21A(6) | 259 |
| 60 | steps to determine tax liability | 260 |
| Unit 9:- Assessment and procedures | ||
| 1 | tax authorities. section 116 | 266 |
| 2 | powers of income tax officers-section 131 to 138 | 267 |
| 3 | power of income -tax authorities regarding discovery, production of evidence etc.section 131 | 267 |
| 4 | search and seizure -section 132 | 268 |
| 5 | power to requisition books of account etc.section 132 A | 269 |
| 6 | provisions relating to retention of books etc ,seized during the course of search | 269 |
| 7 | retention | 269 |
| 8 | power to call for information section 133 | 269 |
| 9 | survey -section 133A | 270 |
| 10 | power of income-tax authority to collect certain information (door to door survey) section 133B | 271 |
| 11 | power to make enquiry-section 135 | 272 |
| 12 | proceedings to be judicial proceedings. section 136 | 272 |
| 13 | power to disclose information regarding assesses. section 138 | 272 |
| 14 | due dates' | 273 |
| 15 | filing of blank return of income b salaried employees section 139(1A) | 273 |
| 16 | filing of return in electronic form .section 139(1B) | 273 |
| 17 | loss return section 139(3) | 274 |
| 18 | tax authorities. section 116 | 274 |
| 19 | return by trusts. section 139(4A) | 274 |
| 20 | returns by political parties. section 139(4B) | 274 |
| 21 | returns by certain authorities/institutions. section 139(4C) | 275 |
| 22 | revised return.section 139(5) | 275 |
| 23 | defective return. section 139(9) | 276 |
| 24 | return by whom to be signed. section 140 | 277 |
| 25 | enquiry before assessement. section 142 | 278 |
| 26 | enquiry | 279 |
| 27 | special audit | 279 |
| 28 | opportunity | 279 |
| 29 | estimation b valuation officer in certain cases. section 142A | 279 |
| 30 | assessment. section 143 | 279 |
| 31 | best judgment assessment. section 144 | 280 |
| 32 | assessment, reassessment and recompilation .section 147 | 281 |
| 33 | basis | 281 |
| 34 | circumstances when income can be paid to escape assessment | 281 |
| 35 | circumstances when income can be paid to escape assessment | 281 |
| 36 | issue of notice where income has escaped assessment .section 148 | 282 |
| 37 | time limit for completion of assessment and reassessment. section 153 | 282 |
| 38 | assessment of income of an other person .section 153 © | 282 |
| 39 | appeals to high court. section 260A | 283 |
| 40 | revision by commissioner of income tax section 263 & 264 | 284 |
| 41 | revision of other orders. section 264 | 285 |
| Unit 10:- Taxation by partnership firms | ||
| 1 | rate of tax in case of a firm .section 167 A | 290 |
| 2 | assessment as a firm .section 184 | 290 |
| 3 | assessment when section 184 is not complied with section 185 | 291 |
| 4 | change in constitution .section 187 | 291 |
| 5 | succession of firms. section 188 | 291 |
| 6 | joint and several liabilities of firms. section 188A | 22 |
| 7 | dissolution of firms. section 189 | 292 |
| 8 | computation of tax liability of partnership firm | 293 |
| 9 | losses incurred by the firm | 294 |
| Unit 11: Taxation of companies | ||
| 1 | types of companies | 306 |
| 2 | section2(17) "company" means | 36 |
| 3 | section 2(18) company in which the public are substantial interested | 307 |
| 4 | section 2(22A) domestic company means | 308 |
| 5 | section 2(23A) foreign company | 308 |
| 6 | section 2(26) Indian company | 308 |
| 7 | concept of amalgamation | 309 |
| 8 | concept of demerger | 310 |
| 9 | losses in case of closely held company .section 79] | 312 |
| 10 | exceptions | 312 |
| 11 | taxation of companies | 313 |
| 12 | minimum alternate tax | 313 |
| 13 | the book profit computation | 314 |
| 14 | applicability of section 115JB to foreign companies | 315 |
| 15 | credit for tax paid under MAT section 115JAA | 316 |
| 16 | report of a chartered accountants 115JB | 317 |
| 17 | levy of interest u/s 234B and 234C with reference to tax on book profit | 317 |
| 18 | amount of loss and depreciation to be carried forward | 317 |
| 19 | capital gains part of book profit | 318 |
| Unit 12:- Set off and carry forward of losses | ||
| 1 | set -off losses | 326 |
| 2 | inter source adjustment. section 70 | 326 |
| 3 | inter head adjustment- section 71 | 326 |
| 4 | deemed income | 329 |
| 5 | cash credit-section 68 | 329 |
| 6 | unexplained investment-section 69 | 329 |
| 7 | unexplained money jewellery etc-section 69 A | 329 |
| 8 | unexplained expenditure-section 69 C | 329 |
| 9 | investment not fully disclosed. section 69B | 330 |
| 10 | an amount borrowed repaid on hundi-section 69D | 330 |
| 11 | carry forward of losses | 332 |
| 12 | loss under the head "income from house properties | 333 |
| 13 | loss from speculation business | 333 |
| 14 | loss from non speculative business | 333 |
| Unit 13:- Tax audit | ||
| 1 | form 3CD | 344 |
| 2 | general information- clause no.1 to clause no.8 | 345 |
| 3 | maintenance of accounts section 44AA-clause no.9 | 345 |
| 4 | presumptive profits. Clause no.10 | 347 |
| 5 | section 44AD business of civil construction | 347 |
| 6 | section 44AE business of piling, hiring or leasing goods carriages | 348 |
| 7 | section 44AE- retail business | 348 |
| 8 | method of accounting-section 145-clause no.11 | 349 |
| 9 | valuation of closing stock-section 145 A. clause no.12 | 350 |
| 10 | amounts non credited to profit and loss account-clause no,13 | 350 |
| 11 | depreciation - clause no.14 | 350 |
| 12 | amounts admissible under various section-clause no.15 | 351 |
| 13 | section 33AB tea or coffee or rubber development account | 351 |
| 14 | section 33ABA | 352 |
| 15 | section 35 | 353 |
| 16 | section 35AC | 354 |
| 17 | section 35CCA | 354 |
| 18 | section 35D | 354 |
| 19 | section 35E | 355 |
| 20 | amounts debited to profit and loss account clause no.17 | 356 |
| 21 | payments made to specified persons. clause no.18 | 357 |
| 22 | deemed profits. clause no.19 | 357 |
| 23 | profits chargeable to tax under section 41 clause no 20 | 357 |
| 24 | deduction on actual basis section 43 B -clause no.21 | 358 |
| 25 | details of any loans or deposits borrowed or repaid section 269SS/ 269T- clause no.24 | 359 |
| 26 | brought forward losses or depreciation- clause no 25 | 360 |
| 27 | deductions under chapter VI-A-clause no.26 | 360 |
| 28 | tax deducted at source. clause no.27 | 360 |
| 29 | quantitative details- clause no 28 | 360 |
| 30 | cost audit report- clause no.30 | 360 |
| 31 | accounting ratios- clause no.32 | 361 |
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